rOCKY cAHAN

In this discussion, Rocky Cahan explores how fundamental investors can use quantitative tools to improve stock selection. He explains the concept of factors—statistical measures that help assess stock performance—and demonstrates which factors work best over time. He highlights the limitations of traditional valuation metrics like price-to-book, emphasizing that free cash flow-based factors have been more effective and consistent. Rocky also delves into risk signals for stock failures, explaining how high capital expenditures, excessive valuation, and declining fundamentals often precede underperformance. Lastly, he discusses how market regimes impact factor performance, providing a framework for knowing when to use different investing strategies.